1978 saw inportant changes in Chin'a foreign aid programme. It cut aid to its two largest recipients, Vietnam and Albania. At the same time, China reqested aid from the United Nations for the first time, and negotiated loans from other countires, although it appeared contradictory that China was continuiing to give foreign economic assistance whilst soliciting aid for itself.

One of the characteristics of China’s “peaceful rise” has been its endeavour to control environment, demonstrated mainly by its dam-building policy. This paper underlines that China has been actively diverting river waters in its territory for different purposes.

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